Applied Materials announced a notable 15% increase in its quarterly dividend, marking the eighth consecutive year of rising dividends, which may have offset some broader market pressures and contributed to its 2% price increase over the past week. This positive development comes amid a challenging week for technology stocks, with the Nasdaq dropping 4% due to concerns over tariffs and the economic outlook. The 1% drop in major indexes, including the Nasdaq, reflected widespread apprehension about potential inflation and global trade impacts. Despite the predominantly negative sentiment in the tech sector, which saw significant declines in stocks like Tesla and Apple, the dividend announcement likely provided investor confidence in the company's commitment to shareholder returns. While the broader market faced a turbulent period, causing major indexes to give back some of their earlier gains, Applied Materials managed to distinguish itself with its latest dividend policy update.

Dig deeper into the specifics of Applied Materials here with our thorough analysis report.

The last five years have seen Applied Materials deliver a robust total return of 302.14%, including share price and dividends, illustrating strong shareholder value creation. While the company's earnings have grown at 15.6% annually, it recently faced a decline in net income, dropping from US$2.02 billion to US$1.19 billion in Q1 2025. Despite those recent challenges, Applied Materials maintained a high return on equity at 34.1%, emphasizing its operational efficiency and capital utilization.

Further strengthening investor confidence, the company entered a US$2 billion revolving credit facility, providing financial flexibility and enhancing its capital structure. Additionally, Applied Materials completed a significant share buyback program, repurchasing 13.3 million shares totaling US$2.42 billion by early 2025. Although it underperformed compared to the broader US market and its industry over the past year, these strategic financial maneuvers underscore its focus on rewarding investors and sustaining long-term growth prospects.

• Discover whether Applied Materials is fairly priced, undervalued, or overvalued in our comprehensive valuation breakdown.
• Discover the key vulnerabilities in Applied Materials' business with our detailed risk assessment.
• Are you invested in Applied Materials already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGS:AMAT.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com